Risk Management

Full credit due diligence documentation available upon request, including: Credit Policy, Credit Operations, TCI Policy Summary, Allianz Policy, QBE Policy, and Systems Demonstration.


Credit Risk Management

  • Policy setting and governance oversight by Board, Credit, Investment and Compliance Committees – all having non-executive representation.
  • Strict adherence to Credit Policies, procedures and eligibility criteria.
  • Credit enhancement via the use of Structural Subordination, Collateralisation and the use of Trade Credit and other Insurance Policies where possible. See Insurance

Portfolio Characteristics

  • Diversification by obligor, sector and asset category.
  • Short duration and largely self-liquidating assets.
  • Low statistical default probabilities (not greater than 1% based on track record of Fund Manager)

Tight Control

  • Proprietary Asset & Liability Management Systems assist in the achieving integrity and consistency in credit decisions and underlying receivables management.
  • Scalable technology provides efficiency in short term, small amount credit contracts.
  • Important internal separation of credit approval and payment processing.

Expected Loss Calculation & Provisioning

  • The Trust Manager assigns a probable default rate and loss given default rate to each underlying exposure using statistical and other relevant data.
  • Access to insurance and other security arrangements are taken into account when assessing the risk of each underlying asset to arrive at an Expected Loss for each investment and the portfolio as a whole.
  • The Fund will maintain access to loss reserves/provisions not less than 2 x Expected Loss.